Rate cut boosts mortgage confidence, says Abbey

11 October 2005

The report found that while house-buyers were boosted by interest rate cuts, they were unprepared for other costs involved in buying a house like solicitors' fees, valuations and stamp duty.

A spokesperson for Abbey said: "Many first-time buyers seem to forget that buying a house incurs significant additional costs beyond a deposit, such as stamp duty and legal costs.

"Three-quarters of the first-time buyers questioned by Abbey are under-prepared for these costs."

According to Abbey, three-quarters of first-time buyers have not saved enough for the other costs involved in buying a house.

Despite the fact that stamp duty can cost upwards of £1,300, many buyers have only set aside around £152 to cover, fees, stamp duty and solicitors' fees.

A recent report says that mortgage lenders like Abbey and NatWest are "clawing" back some of they money they lose through interest rate cuts by implementing hidden charges in arrangement booking fees and exit penalties.